ECB: Thumbs up for PSzÁF-MNB merger


The European Central Bank said it welcomed the integration of Hungarian financial market regulator PSzÁF into the National Bank of Hungary in an opinion published on Monday.

The ECB welcomes the integration of [PSzÁF] into the [MNB], as this integrated institutional framework will improve the [MNB]’s ability to safeguard financial stability and prevent or mitigate systemic risks. In Member States with a relatively small financial market, such as Hungary, there are strong arguments for concentrating supervisory and macro-prudential responsibilities within a single authority,” the ECB said in the opinion. 

The ECB said entrusting the MNB with supervisory tasks is compatible with its membership in the European System of Central Banks, but noted that the new tasks should not affect the MNB's “functional and financial independence” or the central bank's performance of tasks related to the ESCB. The ECB added that draft legislation on the merger does not specify that the MNB's new tasks fall under its exclusive competence.

Hungary's government submitted a bill that would integrate the activities of PSzÁF with MNB on June 7. “The integration is an underlying condition for following and controlling system-level risks that threaten the stability of the financial system as a whole,” according to the bill's justification. The bill would give the central bank the consumer protection and market oversight functions of PSzÁF in addition to oversight of money, capital and insurance markets. Antal Rogán, who chairs Parliament's economy committee, said the final vote on the bill would not take place until the European Central Bank issues an opinion on the merger.

British American Tobacco to Invest HUF 60 bln in Hungary Analysis

British American Tobacco to Invest HUF 60 bln in Hungary

Gov't Wants Sustainable Business Model for Magyar Posta Government

Gov't Wants Sustainable Business Model for Magyar Posta

120,000 Guest Workers Employed in Hungary HR

120,000 Guest Workers Employed in Hungary

Gastrotourism Alive and Well in Hungary Tourism

Gastrotourism Alive and Well in Hungary


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.